WORLD OIL PRICES (August 18-22, 2014 trading days)

World crude prices seesawed over the week on mixed news of fading fears of major supply disruption from crude producers Libya and Iraq, and solid economic data in the United States that lifted demand hopes.

Supply fears stemming from conflicts in both Iraq and Ukraine diminished on continued flow of crude supply despite ongoing crises in said countries. Supply worries have also been calmed by report from Libya’s National Oil Corporation that the country’s export volume has increased from 400,000 to about 550,000 barrels a day. The additional export volume reportedly came from its largest port that resumed operation after a year-long blockade.

Meanwhile, a series of better-than-expected US economic indicators fueled optimism about the economy and hope for stronger future demand. Said positive signs in the US helped to offset weaker data from China and the Eurozone. This was further followed by bullish US oil inventory report, showing a surprisingly big drop in crude stocks last week that also suggested better demand.

About the Asian market, Platts noted that gasoline sentiments remained generally weak with sluggish spot demand on a well-supplied market. While there was unexpected spot demand emerging from India that may help provide some support, the volume sought was relatively small to have any significant impact to the market. A dollar price pick-up seen last Thursday was in line with wider cracks movements in the West.

On the other hand, relative tightness in the Singapore gasoil/diesel market continued to elevate.
Fundamentals in Asia looked to have improved slightly as the excess supply eased with limited exports coming from South Korea and Japan. Poor margins and refinery turnarounds have led refiners to cut gasoil output, Platts noted. Another factor contributing to improved fundamentals was an increase in buying interest driven by lower crude values.

Overall, Dubai crude decreased week-on-week by US$2/bbl. Both MOPS gasoline and diesel also
decreased by about a US$1/bbl.

FOREX:  Peso per US dollar rate depreciated week-on-week by P0.09 to P43.74, from P43.83 in the preceding week.

Other recommended reference sites:
(1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective 26 August 2014, most oil companies implemented a decrease of P0.40/liter for both gasoline and diesel prices. Kerosene was also decreased by P0.50/liter.

Year-to-date total adjustment for gasoline and diesel stood at a net decrease of P2.74/liter and P3.40/liter respectively.

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph